High-limit business credit cards can give you increased purchasing power so you can get what your business needs now and pay for it later.
Business credit cards with high limits allow you to make purchases and withdraw cash, and you’ll pay an interest charge if you don’t pay back the full balance when it’s due.
Small business credit cards with high limits can be beneficial for several reasons:
- Help build business credit
- Differentiate between business and personal finances
- Higher limits than personal credit cards
- Ability to issue cards to employees
- Reward programs for using and paying off cards
Here’s a look at how to apply and how to qualify for the best business credit cards with high limits, plus the pros and cons.
Getting a Business Credit Card
Applying for a high-limit card for business isn’t that different from applying for a personal credit card. Before you apply, you can take steps to improve your creditworthiness.
Check your personal credit, which is one of the main considerations by lenders. Improve your credit score to increase the likelihood of qualifying for business credit cards or business loans by:
- Reducing your personal debt
- Making on-time payments
- Maintaining open accounts long-term
- Avoiding opening too many accounts in a short period
Start by asking your personal banks if they offer business credit cards. Even if their limits are lower than you’d like, there is a benefit to already having an established relationship with a lender.
You also can ask your professional network if they have any credit card recommendations.
Remember to compare the spending limits, rewards, fees and credit-score requirements for each business credit card you’re considering.
After you’re approved and start using your card, your business credit card limit can be extended if you prove your continued creditworthiness.
The Best High-Limit Business Credit Cards
Here are the top 3 small business credit cards with high limits to consider:
American Express Business Gold Card
- Credit Access Line: No preset spending limit
- Annual Fee: $295
- Rewards: Earn 4 times the rewards on the first $150,000 spent in combined purchases from 2 select categories. Options include airfare, advertising purchases, technology purchases and more.
Chase Ink Business Preferred Card
- Credit Access Line: At least $5,000
- Annual Fee: $95
- Rewards: Earn 3 points per $1 on the first $150,000 spent in categories including travel, shipping purchases and advertising purchases.
Spark Cash From Capital One
- Credit Access Line: At least $2,000
- Annual Fee: None for the first year, $95 afterward
- Rewards: Unlimited 2% cash back.
The Pros and Cons of Having a High-Limit Credit Card
While high-limit credit cards may be beneficial to businesses, they aren’t right for everyone. Let’s break down the pros and cons of high-limit credit cards for small businesses.
High-limit credit cards can offer benefits including:
Business credit card rewards can range from cash back on purchases to airline miles. Depending on your business model and spending, some rewards programs may be more beneficial than others.
No Deposit or Collateral
Unsecured business credit cards don’t require a deposit or collateral, unlike some other types of small business funding.
Cash on Hand
With high-limit credit cards, your small business can access a cash advance should an emergency pop up.
It’s easier to use small business credit cards to make online purchases than using other payment methods.
Drawbacks to high-limit credit cards include:
Some high-limit credit cards charge annual fees, which may be more expensive than the rewards you earn through your business purchases.
High-limit cards have higher interest rates than other forms of business funding.
To benefit the most from credit card rewards, it is recommended that you continuously pay off your balance to avoid incurring interest fees.
To qualify for the best high-limit credit cards, you need to have excellent personal credit. Otherwise, you might not be eligible for cards with limits as high as your business needs.
Even with fraud protections in place, business credit cards are susceptible to being stolen, reproduced or used the wrong way.
Business Line of Credit: An Alternative
You should consider a business line of credit in addition to high-limit credit cards.
A business line of credit is similar to a business credit card but there are unique advantages.
- Generally higher credit limits than business credit cards (up to $250,000)
- Typically lower credit score requirements (560 minimum credit score versus 690 minimum credit score)
It’s always a good idea to explore your options and compare funding solutions for your business.